SEC accuses Providence firm of $11M Ponzi scheme

By The Associated Press

news@abc6.com

PROVIDENCE, R.I. (AP) _ The U.S. Securities and Exchange Commission has accused a Providence private investment adviser and his firm of what it calls a Ponzi scheme that cost investors more than $11 million in investor money.

The SEC filed a complaint Thursday accusing Patrick Churchville and his firm, ClearPath Wealth Management, of misappropriating client money in what it called “a series of Ponzi-like transactions.”

They also say that Churchville used $2.5 million in investors’ money to buy a waterfront home in Barrington.

Churchville’s lawyer, Michael Lepizzera, says on Monday that he is still going through the complaint, but says it’s a lot more complicated than what the SEC alleges.

He says many of the investments are still pending and it’s too early to say whether there are losses.

© The Associated Press / WLNE-TV 2015